OGN: Empowering Sustainable Energy through Engineering

Flying the flag

Headquartered in Tyneside, UK, Offshore Group Newcastle Limited (OGN), operates as an engineering, procurement and construction contractor in the oil and gas and offshore wind sector.

“There are fundamental benefits deriving from our geographical location in the north east of England,” begins Craig Melville, chief commercial officer & deputy CEO. “The area has a longstanding heritage within the heavy industry sector, and as a result benefits from the UK’s largest resource of skilled engineering manpower. Combined with this, we have accrued senior management and project teams with extensive industry experience and knowledge.”

Over the last 30 years, Hadrian Yard, now OGN’s flagship facility, has built a reputation for executing and delivering a significant proportion of the offshore oil and gas infrastructure operating in the North Sea/UKCS/Norwegian sector. Located on the North bank of the River Tyne, OGN is perfectly situated to cost effectively access and service the North Sea oil and gas industry. The area is also a major hub for energy related businesses, where the local and experienced supply chain is an invaluable asset.

Focusing on future development, Craig explains: “Apprenticeship and trainee schemes are crucial to the future recruitment needs and success as the whole industry faces an ever ageing workforce. It is essential that skills and knowledge are passed down to the next generation in order to maintain operational capabilities to develop a sustainable business for the future.” Following the employment of four final year apprentices in 2012, in conjunction with Tyne North Training, it hired a further six fabrication and welding apprentices in 2013 and recruited two new rigging trainees. “We have been cautious not to over hire so that our apprentices have the best possible training opportunities. We feel that will be achieved by expanding the programme in line with our order book,” he adds.

The business takes great pride in working collaboratively with its clients from design through to delivery, as Craig elaborates: “We believe in early engagement with the aim of utilising our experience and expertise in order to build client confidence and develop long-term working relationships. This philosophy in turn helps our clients meet their business objectives as we develop solutions that improve return on investment whilst minimising risk.” During 2013 the general market has been quiet although by focusing on target opportunities through this period, OGN successfully continued the development of the business.

“We have completed the Apache Forties Alpha Satellite Platform (FASP) Topside structure, which sailed out in May 2013. It was our first major FEED & EPC contract, and is one of the largest North Sea EPC contracts to be fully completed in the UK in recent years,” highlights Craig. Awarded in September 2010, the scope of work included an integrated production platform, a four leg jacket suitable for water depths of 106 metres, fabricated jacket piles of 80 metres in length and a link bridge structure.

“We have also been working on the engineering, procurement and fabrication of a 5400 tonne jacket for Talisman Sinopec Energy UK Limited. This structure will form part of a new bridge-linked platform within the Montrose Area Redevelopment (MAR) Project,” Craig adds. Measuring 118 metres in length, the jacket is due for installation in mid-2014. Not only benefitting local workers through the provision of 400 jobs, but a large percentage of construction materials and subcontracted services were sourced from the UK, supporting the regional supply chain.

In November 2013 the group was awarded a multi-million pound contract with EnQuest. The provision of its specialist fabrication services to undertake finishing and commissioning works on the EnQuest Producer, a 249 metre long Floating Production, Storage and Offloading (FPSO) vessel, will create 700 new project jobs at its Tyneside facility. Continuing the organic growth, Craig announces: “We have very recently won a prestigious multi-million pound contract for a ‘blue chip’ international oil and gas operator for the construction of a new process module. We will engage a workforce of up to 500 personnel to deliver the programme.”

Extending its success in oil and gas and having created many hundreds of new jobs, the business is focusing on its long-term future with diversification into the renewable energy sector. Utilising its scope to service both oil and gas and renewable industries from the facilities in Tyneside, Craig says: “We have secured planning permission for a new £90 million offshore wind turbine jacket manufacturing facility at our Hadrian yard base, which has the potential to create hundreds of new jobs. The 36,000sqm factory will be able to manufacture various types of steel foundations suitable for large turbines with the capacity of 5MW or more each.”

These will include the Triton foundation, an innovative three-leg steel jacket, developed by OGN and its subsidiary Aquind, specifically to address the needs of developers of large-scale offshore wind farms in the UK and Europe. The new purpose-built facility will be capable of producing up to 150 jackets a year.

“Looking ahead we plan to continue to grow the business in both sectors, through enhancements to our facilities and our regional supply chain. Our investment in a mass manufacturing factory will be a major strategic advantage across both sectors and will provide our client base with first class and reliable service,” concludes Craig.

OGN Group
Services: Engineering, procurement, construction and installation services